The Chandigarh Housing Board (CHB) is again considering withdrawing its general housing scheme in Sector 53, marking the third time the project has faced cancellation despite two demand surveys showing overwhelming interest. The final decision will be made during a meeting of the Board of Directors scheduled for Wednesday.
Background of the Scheme
The scheme had been revived after nearly a decade, following approval from Punjab Governor and UT Administrator Gulab Chand Kataria. However, the project has faced multiple setbacks. In August 2023, then Punjab Governor and UT Administrator Banwarilal Purohit scrapped the scheme, deeming it unnecessary. This led to the cancellation of Rs 200-crore tenders floated on August 2, 2023, for constructing 372 flats on nine acres.
Kataria revived the project in November 2024. By July 2025, the CHB began the launch process, proposing 192 high-income group (HIG) units, 100 middle-income group (MIG) flats, and 80 economically weaker section (EWS) flats on nearly nine acres. During a meeting on September 11, 2025, the Administrator directed the Chief Architect to explore dividing the 8.975-acre land into two pockets for sale as group housing sites, as per existing norms.
Financial Viability and Demand
The Administrator also instructed the Chief Architect to assess options for enhancing the floor area ratio (FAR), building height, and density to make the scheme financially viable for the EWS category. The Chief Architect was tasked with identifying feasible alternatives to group housing under the Master Plan for land sale.
Despite these efforts, the matter will be placed before the Board of Directors for approval to discontinue the scheme. This decision comes even after the CHB received an overwhelming response to its demand survey completed in March 2025. The survey garnered 7,468 applications for only 372 flats, translating to nearly 20 applicants per unit, indicating strong demand for CHB housing.
Historical Challenges
The Sector 53 housing scheme has faced repeated derailments over nearly a decade. First proposed in 2018, the scheme initially received only 178 applications for 492 flats, primarily due to high prices — Rs 1.8 crore for a three-bedroom, Rs 1.5 crore for a two-bedroom, and Rs 95 lakh for a one-bedroom unit — forcing the CHB to withdraw the scheme.
The last CHB scheme was floated in 2016 for 200 two-bedroom flats in Sector 51. The upcoming board meeting will also discuss waiving the lock-in-period condition from 10 years to five years for those flats under the Self Financing Housing Scheme 2016 in Sector 51-A.
Implications
If the scheme is withdrawn again, it would mark a significant setback for prospective homebuyers in Chandigarh, especially given the high demand evidenced by the survey. The CHB's repeated cancellations raise questions about the viability of affordable housing projects in the city and the effectiveness of administrative decision-making.
